Ms. Jyoti Balasundaram, Vice President. - For reasons recorded below, we waive pre-deposit of Service Tax together with interest and penalty and we hereby proceed to decide the appeal itself at this stage with the consent of both sides as the issue in dispute lies in a very narrow compass.

2. The appellant herein is a proprietary concern engaged in the business as the commission agent for fabric-sourcing and procurement of high quality fabrics for M/s Hasbro Clothing Pvt. Ltd., who are engaged in the business of stitching Readymade garments (of casual and formal Wears) in the name and style of "Basics", "Genesis" and "Probase". The benefit of exemption from the payment of Service Tax in terms of Notification No. 14/04-ST dated 10-9-2004 as amended by Notification No. 19/2005 dated 7-6-2005 was denied to the assessee by the authorities below on the ground that the assessee was not engaged in providing ‘Business Auxiliary Service’ of textile processing. The Notification in question reads as under :

"In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided to a client by a commercial concern in relation to the business auxiliary service, in so far as it relates to,-

(a)procurement of goods or services, which are inputs for the client;

(b)production of goods on behalf of the client;

(c)provision of service on behalf of the client; or

(d)a service incidental or auxiliary to any activity specified in (a) to (c) above, n from the whole of the service tax leviable thereon under section 66 of the said Finance Act :

Provided that nothing in this notification shall apply to,-

(i)a factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(ii)a company established by or under the Companies Act, 1956 (I6f 1956);

(iii)a partnership firm, whether registered or not registered;

(iv)a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India;

(v)a co-operative society established by or under any law;

(vi)a corporation established by or under any law; or

(vii)a body corporate established by or under any law,

unless such factory, company, partnership firm, society, co-operative society, corporation or body corporate, as the case may be, provides any business auxiliary service in respect of any activity specified in (a) to (d) above in relation to agriculture, printing, textile processing or education."

3. It cannot be disputed that the assessee is a commercial concern, which provides ‘Business Auxiliary Service’ relating to procurement of goods (fabrics) which are inputs for the client M/s Hasbro Clothing Pvt. Ltd. The proviso, covers seven categories of business and the Notification’s provisions set out that the exemption is not applicable to seven categories of the persons set out therein unless such seven categories provides any Business Auxiliary service in respect of any activity specified in clause (a) to (d) of the main part of the Notification in relation to agriculture, printing, textile processing or education. The assessee herein being an individual, not falling within any of the seven categories set out in the provisions, is not required to establish that it is providing Business Auxiliary Service in respect of either procurement of goods or services, which are inputs for the client; production of goods on behalf of the client; provision of service on behalf of the client; or a service incidental or auxiliary to any activity specified above, feeai-wrrofe’ of the activity specified above in relation to agriculture, printing, textile processing or education.

4. Since the appellant herein is an individual and procuring the goods for clients, which are inputs for his client, the assessee is covered by the first part of the Notification and we are not required t